AXA IM launches European core fund

The firm has already raised €500 million and completed its first deal for the pan-European open-ended real estate fund.

AXA Investment Managers – Real Assets, the Paris-based investment arm of French insurer AXA, has launched an open-ended European core fund.

The firm has initially raised over €500 million but aims to grow the fund – AXA CoRE Europe – and eventually collect €3 billion to €5 billion.

The strategy will see AXA IM focus on investments in the UK, Germany and France while maintaining the ability to invest across the entire continent from Spain to Benelux and the Nordics or Switzerland. The firm will target primarily offices and retail, and seek investments into well-located assets which have high building technical and sustainability specifications and are let to strong tenants on medium or long term leases.

The lead fund manager for AXA CoRE Europe will be Rainer Suter who is head of continental funds and separate accounts at AXA IM. He will be supported by three portfolio managers based respectively in London, Paris and Cologne.

The firm used capital from the fund to co-invest alongside other investors to acquire France's tallest tower, Tour First in Paris La Défense, in a deal understood to be valued at €800 million.